Under the new rules, Japanese companies will no longer be obliged to pay taxes on unrealized profits if they possess cryptocurrencies for payment purposes. Additionally, companies will not be taxed on the market value of self-issued coins owned by them.
Officials have remarked that Japan will become an exceptional case, as it will tax companies based on the market value of their cryptocurrency assets, excluding self-issued coins. The objective of these amended tax regulations is to incentivize companies to utilize cryptocurrencies more actively as part of their business models.
The Japanese government expects that these tax reforms will enable Japan to establish a more competitive position in the worldwide cryptocurrency market, attracting international companies seeking a favorable regulatory environment.
To note, in November, the SBI Group, a major Japanese financial conglomerate, partnered with Circle to offer banking services and promote the USDC stablecoin.